BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE KEOTA FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 10 ORDER NO. 10-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1977 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, pursuant to court proceedings on September 23, 1977 in the District Court in and for Weld County, Colorado, concerning the retaining pits located in the E½ Section 9, Township 9 North, Range 61 West, 6th P.M., Keota Field. Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2.      That the Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3.      That earthen pits, to contain produced water, are located on the Scheetz lease in the NW¼ NE¼, and on the Gillette lease in the SW¼ SE¼ Section 9, Township 9 North, Range 61 West, 6th P.M., Keota Field. The pits have been in existence for several years. Pepper Tank Company has been operator of the leases since 1959.

4.      That on November 30, 1976, the Director approved an "Application For Permit to Use Earthen Pits" on each lease, conditioned that the pits be sealed, or lined, or the produced water be injected. Approximately two (2) tons of bentonite has been applied to the pits. The pit on the Scheetz lease is presently dry and does not contain any produced water.

5.      That the evidence at the hearing indicated that the permeability coefficient for the type of soil as that found at the pit site is approximately 20.51 ft. per year, or .67 inches per day and initial results of tests of soil samples taken from the pits, which have been sealed with bentonite, indicate permeability coefficients of approximately .13 feet per year or .00427 inches per day in the Scheetz pit, and .21 feet per year or .00690 inches per day in the Gillette pit. The Environmental Protection Agency allows a maximum permeability coefficient of .25 inches per day.

6.      That evidence presented at the hearing indicates that the bank of the retaining pit on the Gillette lease has been breached and produced water has run out onto land immediately adjacent to the pit.

7.      That no evidence was presented at the hearing to indicate that water from the pits has entered any fresh water aquifers, or has polluted any waters of the State, nor have there been any injuries to wildlife or animals, and the only evidence of the proximity of water is contained in the staff memorandum in the retaining pit file indicating the nearest creek to be approximately one and one-half (1/2) miles to the west.

8.      That plaintiffs failed to present the Commission with evidence of any quantifiable damage for the several years that the original pits have been in existence.

This combined with the lack of evidence that there is a reasonable expectation that damage will occur in the future causes the Commission to find that petitioner's application on this issue is without merit.

9.      That in view of the evidence presented at the hearing, Pepper Tank Company should repair the banks of the pit where breached, keep pits free of all debris, monitor the condition of the pits to continually maintain a permeability coefficient at a level no less stringent than the standard set by the Environmental Protection Agency, and provide any additional protection as will be reasonably necessary to comply with the Rules and Regulations of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED that the break in the bank of the retaining pit on the Gillette lease, located in the SW¼ SE¼ Section 9, Township 9 North, Range 61 West, 6th P.M., Keota Field, shall be repaired and the banks maintained in such a manner as to properly contain the produced water.

IT IS FURTHER ORDERED, that the pits located on said Gillette lease and on the Scheetz lease, located in the NW¼ SE¼ of said Section 9, shall be kept clear of any debris.

IT IS FURTHER ORDERED, that Pepper Tank Company shall monitor the condition of the pits to continually maintain a permeability coefficient at a level no less stringent than the standard set by the Environmental Protection Agency.

IT IS FURTHER ORDERED, that Pepper Tank Company shall take such other steps as may be necessary to bring the Scheetz and Gillette retaining pits into conformance with the Rules and Regulations of the Oil and Gas Conservation Commission.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ORDERED this 1st day of November, 1977.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Frank J. Piro, Secretary